Govt okays continuation of reservation quota for ITI orders to BSNL and MTNL
16 Jan 2014 12:27 AM GMT
The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the Department of Telecommunications regarding continuation of reservation quota for ITI Ltd, an official statement said.
The reservation policy will remain in force for one year with effect from 21 September, 2013 and it should be again reviewed after the expiry of this period.
‘To continue the reservation quota policy for Indian Telephone Industries Ltd by reserving 30 per cent of procurement orders placed by BSNL and MTNL for Indian Telephone Industries Ltd Ltd, for products manufactured by ITI and 20 per cent of the network roll out orders for their turn key projects (like GSM network roll-out) of BSNL and MTNL,’ the statement said.
It said ITI would accept orders under the reservation quota only after the price is known and if it is commercially viable and shall exercise its option under the reservation quota within 15 days of the opening of bid.
The statement said BSNL/MTNL will give 10 per cent advance against the orders placed on ITI, subject to liquidation of advances outstanding against previous projects awarded to Indian Telephone Industries Ltd by the state-run telecom companies.
The government, however, said BSNL and MTNL should have to follow public procurement rules for central public sector enterprises (CPSEs) once they are framed.
The Government has introduced the Public Procurement Bill 2012 in Parliament, and under the provisions, procuring entities, including CPSEs, would have to frame rules for public procurement of goods, work and services.
‘Once such public procurement rules for CPSEs are framed after the enactment of the Public Procurement Act, these would also be applicable to CPSEs under the administrative control of the DoT,’ the statement added.
The reservation policy will remain in force for one year with effect from 21 September, 2013 and it should be again reviewed after the expiry of this period.
‘To continue the reservation quota policy for Indian Telephone Industries Ltd by reserving 30 per cent of procurement orders placed by BSNL and MTNL for Indian Telephone Industries Ltd Ltd, for products manufactured by ITI and 20 per cent of the network roll out orders for their turn key projects (like GSM network roll-out) of BSNL and MTNL,’ the statement said.
It said ITI would accept orders under the reservation quota only after the price is known and if it is commercially viable and shall exercise its option under the reservation quota within 15 days of the opening of bid.
The statement said BSNL/MTNL will give 10 per cent advance against the orders placed on ITI, subject to liquidation of advances outstanding against previous projects awarded to Indian Telephone Industries Ltd by the state-run telecom companies.
The government, however, said BSNL and MTNL should have to follow public procurement rules for central public sector enterprises (CPSEs) once they are framed.
The Government has introduced the Public Procurement Bill 2012 in Parliament, and under the provisions, procuring entities, including CPSEs, would have to frame rules for public procurement of goods, work and services.
‘Once such public procurement rules for CPSEs are framed after the enactment of the Public Procurement Act, these would also be applicable to CPSEs under the administrative control of the DoT,’ the statement added.
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